10th Mar: Trader Tim’s Penny Stock Post – #MATD #AST #ALBA #ARS

@TraderTim5ALBA, ARS, AST, MATD0 Comments

Trader Tim’s Penny Stock Post analyses key RNS releases every morning. Not all releases can be covered, priority will be based on liquidity, significance and demand. To receive Trader Tim’s Penny Stock Post direct to your email box at 10am each morning, click here.

Morning all!

Apologies – it’s been a fragmented week. I have been tied up with a few different things. Also, it been painfully quiet on the news front this week. Not much movement at all. However, there are a few RNSes out this morning which are of interest.

Asiamet provide an update to the market regarding their drilling campaign to upgrade and expand the Mineral Resources at the BKM deposit. Results will be added to the ongoing Feasibility study.

Alba provide a rebuttal to the claim made by BBC London news that Angus Energy, operator of the Brockham well, conducted ‘unauthorised’ drilling. Angus maintain that drilling was approved by the OGA, EA and HSE and was not in breach of planning consents.

Finally, I had a great night at Momentous Events yesterday. A good turnout with plenty of good speakers in the line including Wikipedia’s Jimmy Wales representing The People’s Operator.


Ascent Resources

Market Cap: £30.59m
Price: 2.075p
Spread: 4%

Ascent Resources provide an operational update this morning.

Background

Ascent Resources announced an agreement with Croatian company, INA, to sell gas to the company back in August. This news sent the share price rocketing up by about 70%. This sale of gas could be done by sending it through a pipeline from Slovenia to Croatia and selling it at the border. This is a quick, cheap and efficient route to market for a company, who were facing a long legal battle over the appeal of their IPCC licence. To secure the required pipeline, Ascent acquired gas company Trameta in Slovenia.

The company updated the market in early January to say everything was on track, but that there had been some slight delays. The initial drill holes did not allow “allow sufficient gas to flow to satisfy the supply contract with INA in Croatia”. This has since been resolved. Despite the delay, the Ascent indicated first gas would still be delivered in Q1 2017.

Today

The first sale of gas is expected to take place in early April. A slight delay on the original Q1 promise, but nothing to worry about. Gas will be sold to a corporate consumer and will provide immediate revenue.

The AIM resource company is yet to provide gas to INA. As per the contract, the gas still requires some additional treatment. Ascent are still finishing their separation facility, which would be require to undertake this treatment. The AIM stock has explored other routes – such as leasing the require equipment temporarily – but feels that this is unnecessarily expensive. Therefore, Ascent are awaiting for the facility to be finished. The plant is expected “to be ready for production to INA in three months”. Avoiding these costs, should mean the INA is more profitable to Ascent and should save the AIM company roughly €500,000.

Ascent recently raised £3 million at 1.85p, so the company should be reasonably well funded. Also, aside from the INA contract, the company have and will continue to sell gas to local buyers, which will be a new source of revenue for Ascent.


Petro Matad

Market Cap: £78.70m
Price: 27.375p
Spread: 3%

Petra Matad, a company that has seen its share price soar since the beginning of the year, provide a company update this morning.

Background

Back in August, the company were boosted by a $15 million payout from Shell. Matad had a farm-out agreement with BG. With BG being acquired by Shell, Shell took the decision to exit this agreement early despite the $15 million exit clause. The company was trading at a minuscule market of £5.5 million. The shares doubled in value on the day that the news was announced.

Under the terms of the exit agreement, Matad would potentially keep 100% of exploration rights in the Block IV and V, based in Mongolia, in addition to the $15 million. The project spans 60,000km.

The company was awaiting approval from the Mongolian government of the reassignment of the interest in Blocks IV and V following Shell’s divestment. The company indicated: “this is likely to occur before the end of 2016”.

On December 15, Matad released an RNS confirming receipt of Mongolian Government approval of the reassignment of the interests in Blocks IV and V. In February, the final $5 million payment was received and all contractual and regulatory requirements in relation to Shell’s affiliate company, BGMH, were completed. As a result of this, Matad now hold 100% of Blocks IV and V.

Today

The AIM resource stock is preparing for a drilling programme in Blocks IV and V.

The company announce the appointment of Tim Bushell as Non-Executive Director. This come alongside the news that Phil Vingoe will be retiring as Non-Executive Director.

Elsewhere, Petro confirm that it has received three bids from pre-qualified vendors for its drilling rig and services tender. This is good news, the company remains on track to begin drilling in July.

Petro are also considering a farmout partner. The AIM company confirms that there has been a high level of interest shown, but has decided to extend the bid deadline to May 2017. Either way, Petro Matad have confirmed that they have sufficient cash to undertake the drilling themselves. Having received the final $5 million payment from Shell, the AIM company confirmed they had a cash balance circa $11 million, which they stated would be sufficient to undertake a drilling programme this year as planned without securing a farmout.

On the operational front, we are very encouraged by the level of interest shown in the farmout process and finally, the receipt of bids for the drilling rig and services tender marks another milestone for the Company and represents the next step towards commencing a drilling programme in mid-2017

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If there are companies that you want me to cover in the coming days or have significant news due imminently then let me know. My aim is to deliver value to readers, so I want to ensure I’m doing this as much as I can.

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